tv Street Signs CNBC September 12, 2012 2:00pm-3:00pm EDT
here on cnbc. that is it for "power lunch." brian sullivan, as we look at apple, up .5% on the trading session. we'll continue because street signs begins right now. plk. welcome to street signs, everybody. i am brian sullivan in san francisco, outside the big and the iphone 5 and maybe more launch event. we've got a crowd here that has been with us pretty much the whole morning. it has been a big time event. there are hundreds of people inside. mandy, the event is still going. in moments i'm going to tell you what we know and maybe what we don't know and are still yet to learn. >> we are looking forward to it. hello, everybody. i'm mandy drury. there is a lot happening here at hq. could drill down on how the u.s. will respond to the attack in libya and what it will mean for oil prices. but first, back to brian in
san francisco. it sounds like a weight watchers ad, it is thinner, lighter and supposedly will make you feel fabulous bhap do we know so far? >> you just hold it in your hands and you're automatically better looking. they have not announced that yet but that may be to come. the erent is still going on. as we've been doing all day, i'm getting updates as they come across. we'll bring them to you all hour long first on cnbc. that said, here's what we know so far about the iphone 5. we care about the iphone 5 because it is 70% of apple's gross revenurevenue. it is forecaaster, it is lighte is thinner, it has a bigger screen, a longer battery life, it's got a better camera. here's what we don't know or have not heard yet -- we don't know about the new phone's price. we don't know exactly about a release date, though we have heard it might be september 21st. remember the apple 4s did 4 1/2
million pre-orders in three days. see if the 5 can trump that. waiting on price and release date. outside of the apple 5, you've also got some talk about potentially a new ipod, maybe a bigger nano, maybe a smaller ipad, a kindle killer, if you will. could there be a tv? could there be a car? a unicorn? probably not the latter. we have an hour to get through. >> we're hearing the iphone 4s is going to cost $99. a lot of people are saying with regards to the reaction of the share price, typically iphone events or big and the events do tend to be a solo news thing. in the lead up to today i think apple's shares lost 3% this week. today they're just marginally higher. do people feel maybe this is a
disappointment? things aren't as expected? or to the contemporary? >> you heard henry blodgett at the end of hower lunch. so many bloggers and reporters have now covered apple, things are getting leaked out more an more every time. we've heard some cool stuff but we're still waiting on a big unveil. will there be perhaps a big final surprise of an apple tv? most analysts i spoke with, eight to ten of them via e-mail or in person in the last 24 hours, they really didn't expect the ipad or itv this time because they thought apple would be taking attention away from their biggest growth driver and that is the iphone. the event is still going on. we'll bring you the data and details as it crosses, first on cnbc but as you noted, the stock does tend to fall couple days after the launch. but then it does this.
right? >> and has done this. if history is correct, it will continue to do that. what we're hearing is that they're starting to talk about the ipod, brian. we don't have any details yet but of course this is a first on cnbc kind of event so hopefully we'll get those details very shortly. what are the expectations here? >> well, there's talk about a slightly larger nano. they still want to keep integration for some accessories people have, you can use it as a watch. those are sort of tweets. apple has a service right now called ping. are you not familiar with it? you're not alone if you're not. it is sort of supposed to be a social net working for itunes. i'm an itunes addict and i don't use it. there is discussion whether or not we'll see greater facebook integration. the cool thing about whenever there is an executive like ea, 30 minutes ago, the video game company executive stepped on
stage and showed off the stock. we can bring up maybe ea guys. got a pop. whenever we see or hear discussion about a specific company, those stocks do tend to move. maybe not apple, but the other stocks do tend to move. >> those in the periphery. it is kind of ironic. iphone bigger and the ipad potentially smaller. mark zuckerberg made his first comments last night since the facebook ipo in may. a lot of people were surprised at just how poised and confident he was up there on the stage. >> that's right, mandy. we've done a lot of zuckerberg interviews. we heard him speak a number of times and he certainly seemed a lot more comfortable than he has in the past. he came across as pretty relaxed, confident and realistic pin stead of insisting he's focused solely on facebook's
product, he made a point of saying that he cares about facebook's shareholders and he acknowledged the company's challenges. >> is there a morale problem? how are you dealing with that in general? >> well, it doesn't help. but, look. i think that there are a few things that are important to keep in mind here. first is that facebook has not been an uncontroversial company in the past. >> zuckerberg focused his comments on mobile saying the word 34 times. he says mobile will yield more ad revenue than desktop ads. he revealed he wrote his founders on facebook from his mobile phone. zuckerberg talked about the crucial importance of making money. >> since the beginning of building facebook, one of the core things that i've learned is that in order to do this we have to build a great team. in order to build a great team,
the best people want to work on a mission that they believe in but they also want to make a bunch of money. right? in order to do that, you have to build a great business. >> zuckerberg also said that he still writes code for facebook, although now it's just for fun. he admitted that sometimes his code breaks. although his facebook employees quickly fix it. >> that's interesting, talking of the employees here. i would imagine that morale at facebook watching the stock go down since the ipo, i would imagine morale is not fantastic. probably a lot of people who came on board to facebook thinking they'd be pretty rich by now. are you hearing anything about whether employees are wanting to leave and go to other companies? >> well, i've been talking about that with people here today, especially. also i was just speaking with a couple of former facebook employees this morning. they pointed out if you're a facebook employee and you are getting paid now, if you're perhaps creating a new contract right now, now is actually a pretty good time to create a new contract with the idea if you're getting compensated in stock, that stock will go up over time.
zuckerberg spoke about that a little bit in his comments yesterday, saying it is kind of a good time to get in on facebook if you feel the stock is going to go up. if you buy stuckerberg's mission, you'll want to stay at facebook. i think it depends on whether or not you believe the stock will be worth more in the future. >> let's -- thank you for that, julia boorstin. let's get right down to the floor of the new york stock exchange where bob pisani is at his usual perch. we were talking with brian about the periphery plays, derivative plays if you like from apple. can you tell us how they are moving on the stock market today? >> yeah. let's just put up charts and show you what's goes on. electronic arts, new racing game for the iphone that will be announced. that popped immediately on that news. that had a nice little move to the up side. talking about facebook, moved right to the highs of the day. they were upgrading facebook status using siri.
didn't do that before. in facebook, let's move on. shutterfly. we'll have a new camera in the iphone and new photo sharing feature. that may not necessarily be good news for shutterfly. see the immediate move to the downside but it's since moved back up to just about where it was prior to the announcement being made. finally one i'm still curious about is yelp. maybe brian can tell us if anything's going on. yelp is supposed to be part of that new apple map feature that's in there. it is supposed to be prominently featured. the stock has moved down in the last few minutes. maybe we can get some clarification on what's going on there. finally want to show you something independently. abercrombie & fitch was briefly halted. there was a volatility trading clause here at the new york stock exchange. you can see now it moved up and it is still moving on the up side. we understand there were reports out that they have hired goldman sachs in response to pressure from activist advisors. that's moving that stock up rather notably here about 6%.
>> i'm glade you've actually mentioned a few other names out there. it really feels as if just watching the wires and twitter feeds, it seems as if apple is the only event moving the stock market. >> bob, i want to jump in and address what you were talking about with yelp. yelp was indeed mentioned. 20% of yelp's volume so far today came within five minutes after being mentioned at the event. but as you noted, the stock is down. but look at the spike just to the left of where we are right now. this is what we're starting to see. you got traders playing these announcements. look at ea. shutterfly, sfly, actually took a drop because apple announced a new photo sharing feature. people are making assumptions on the good or the bad or what the trading angle might be on some of these announcements. but look at shutterfly, bob. it took a drop, then recovered.
yelp went the opposite. >> but did we get clarification? yelp was supposed to be part of the new apple map. they announced that several months ago. have they confirmed there that it is going to be in the new apple map? >> i have not heard a confirmation as far as what they call native apps. in other words, when you buy a new phone from the store, what apps are indeed already installed on the phone. lot of talk that youtube could be booted off because of their sort of hangup with google. facebook is maybe going to be put on. we don't know. still waiting on a lot of details. but i will bring it to you as soon as it happens. people are trading these comments. a guy steps on stage and the stock surges 5%. >> absolutely. bob, thank you for that and brian, do not go anyway because of course we're going to get back to you over the course of the day. >> i can't! >> as the course of the show. as all the analysts file out,
we're going to grab them and get their thoughts. many call it the world's best airline -- the service is amazing, the price is a little sky high. in the age of budget carriers, does an expansion actually make sense? what is the best airline you have ever flown and why? tweet us and we'll read them later on in the show.
at this stage it looks like the sky is not fall after all, germany finally giving the green light for the european bailout and a new fed survey shows the eurosis fever. >> did you coin that disease? >> we actually had a street signs poll on twitter and it was the winning -- >> i like it. breaking is right. but breaking implies they still have a fever. right? that works? >> yeah, that works. >> so they still have a fever. i think we are the first ones to pick up in market sentiment some -- i call it coming off the boil when it comes to the european crisis. but the water's still pretty hot. take a look. we've asked this question for quite a while now -- what is the outlook for european monetary union? will some countries be ejected? or will no countries be ejected?
we hit a high in july of 82%. it's come down to 72%. the chance that it will remain intact over the next five years has gone up from 1 in 10 to 1 in 4. you see same improvement on the probability of default when we look at the troubled countries. these are the results from july. 23% on ireland would default in the next three years. 2 25% thought italy. 79% greece. ireland doing better than italy in terms of probability of default. even greece came off a little bit. all of this in the wake of the pronouncement they'll do whatever it takes to hold the eurozone together and regarding the purchases of bond of troubled countries. let's look at what happened to the assessment of the euro crisis when it comes to the
biggest threats facing the u.s. economy. these are the july results. now we'll overlay the current results. it's come down quite a bit. europe crisis now just 24%. the fiscal cliff remains a big concern. 40% of our respondents, so little less concerned about tax an regulatory policy and slow job growth. that's become a bigger concern for our market experts. bob brusca saying, the droghi plan fixes nothing and papers over the structural cracks in the european monetary union pop not sure that i agree it fixes nothing, but i think he's right as you see from those numbers, they are down offer the top but they're still pretty high.
the potential of default and your european union breaking up. we're going to be in d.c. tomorrow for that press conference, live on street sign beginning at 2:00 p.m. steve, join me on the chair. i also want to bring in here our chief international correspondent michelle caruso-cabrera who is live in madrid. also david kelly, chief global strategist at jpmorgan global funds. michelle, what's going on behind you? >> there is a protest going on. it is one of several that we've seen in the last week ahead of a really large expected one on saturday. but below us more than 1,000 transit workers are protesting because they are facing salary cuts. we saw workers from u.p.s. who say 75 workers at the local u.p.s. office are going to be cut. we are seeing this over and over again in spain and a lot of
these countries across europe because the governments have to cut their budgets and their deficits. many transit workers, many paid for by taxpayer money, will face cuts or lose their jobs. so a lot of social unrest even as we see the financial unrest calming down a bit. >> michelle, you illustrate a really great situation. how many more positive catalysts are there in europe as we see it right now? at some stage we're going to have to move from damage control and band-aid solutions and try to fix things to actually moving to growth, for example. right? >> well, yes. that's what europe needs from an economic perspective. what's going on right now is the ecb is doing its job and protecting the financial markets and protecting the banks but the politicians still aren't doing their job. they have to recognize you actually have to stimulate growth before you fix fiscal conditions. they've never recognized this and that is really the problem. i think the strikers are right, if have you a recessionary
economy and you pose more austerity, will you make things worse. the euro is like a coin rolling on its edge right now. it's been held back, sort of on training wheels to stop it from collapsing. that's the ecb. but at the same time things aren't really improving because the governments will not take steps necessary to improve the economies. >> david kelly, brian sullivan out in san francisco. i want to step away from the apple coverage for a second. i have a very fundamental question for you. can economies recover in periods of austerity? >> they can recover with a little austerity. you have to take it very easy. in the united states we do need to bring the deficit down but we need sort of a fiscal ladder to bring it down 1% at a time. have you an economy that's shrinking, the best thing to do is to stop trying to cut the deficit of the current year, get growth going. then once you have 1% to 2% growth -- >> the trouble is you have to
allow for economies to restructure. so if you don't bring -- in some cases, for example, with greece -- i'm sure michelle will tell us in spain as well -- if you don't cut back some of that government spending, you don't force any restructuring that's necessary to lay the foundation for growth. >> that's absolutely right. >> i can give you an important example of restructuring, guys? >> go ahead, michelle. >> here in spain, they have finally reformed some of the labor market. i was speaking with a labor attorney today. he said two years ago i was speaking with american multi-national subsidiary. they needed to cut their spending here in spain by 10%. they wanted to cut everybody's salary by 10% but very restrictive union collective bargaining agreements and labor laws do not permit them to do that. so instead, they fired 90 people. they would have rather reduced everybody's salary but instead ended up doing layoffs. they changed the law now so that multi-national, if in the same situation, could do that. that would have reduced unemployment or would not have
contributed to unemployment. those are the kind of things steve is talking about, restructuring the economy so it will work and be more flexible in tough times. >> that's the right thing to do. but what you need to do is do both things. you need to make the restructuring moves to change the pension laws, change the taxation system, but at the same time in terms of pure deficit, do it by tax cuts, if you like. cut taxes while you restructure but don't try and push down the deficit too quickly when you have an economy already in session. >> unfortunately we have to wrap it up there. i wonder whether this time next year we'll still be talking about the european debt crisis. it's been three years already. thank you all very much. tomorrow the focus will be back on the united states. we'll have the fed decision, 12:15 brian is going to host that special event, flying all the way back frb san francisco for it at 2:15. also on our show, we'll hear from ben bernanke himself. that's a live news conference. it is a really big day here on
cnbc. >> is that my picture up there with bill gross? >> it is a really big qaeda out in san francisco with the apple iphone 5 release event. we're getting details on a new nano, brian. >> yeah, first off that special coverage is all predicate on the u.s. air traffic system working as planned, which you know is about a coin flip of a chance. i hope to be back. it's been a while since and the has focused on the ipod. right? that really morphed into the iphone. that's all changed. getting details about a refocus on the ipod. the nano is the smaller of the devices. can you use it like a watch format, it is going to be slightly larger. some described it as a small ipod touch. so the ipod nano is getting a refresh and refocus. here's some more amazing numbers. we talk a lot about these big
numbers we've heard from apple. 350 million ipods have so far been sold worldwide. that is a lot of ipods. they're also refreshing itunes. itunes was built in to icloud. which means if you're watching a movie on your ipad, and you pause it, you can go to your computer and resume at the same point. i feel very egotistical saying the word "i" so much. >> pandora and garmin, we're watching those stocks because they're continuing to spike back up. continuing to watch all the various derivative and halo plays around it. >> manly, i want to jump in on pandora. there was a lot of fear that apple may offer a subscription service to go head-to-head with pandora. we saw pandora tank. you covered it big time last friday when the stock took total dive. we haven't heard anything about
that yet from apple. doesn't mean we won't but we haven't so far. which explains why pandora is spiking. the market breathing a collective sigh of relief on "p." >> brian, we'll be back to you later on. just ahead on street signs, we'll head back to the apple event. the disaster at a drive-through with mcdonald's. it is about to make it really hard to order that extra large big mac and those extra large fries. plus, talking about fat, obie the obese dog. enough said. the video just says it all. street signs is back after the break. here's today's "return on retirement." this year over 56 million americans will receive nearly $800 billion in social security benefits. that spells additional revenue for the 14 states that tax benefits. so, do you live in one of them? the answer when we return.
today's "return on retirement --" do you live in a state that taxes social security benefits? here are the 14 states that do. for more on retirement, go to retirement.cnbc.com. there's plenty of sunshine in sin city. las vegas casinos raked in more than $1 billion in the month of july. that is a 17% jump in revenue compared to the same time last year. casino stocks also seeing a nice rebound over the last couple of months. we have a few of them up there for you. frightening results. mcdonald's announcing to post calories on all its items on menu boards and drive-through menus. they'll start next week. stock not really taking a hit on
that news but personally i still find it rather tragic. it is just going to be just that bit harder to indulling in the big mac and large fries when you see the quite frankly disastrous calorie count. other fast food chains are expected to follow mickey d's lead. that big mac and large fries will set you back more than 1,000 calories. that is something this dog should not be eating. this is obie the obese dog. he was on the "today" show this morning. he weighs 70 pounds which is about 40 pounds overweight for what that type of dog should normally be. which is the bigger disaster dujour? obie the obese dog or the calorie counts on the mcdonald's menus? >> usually i've got a strong opinion either way even when i don't know what i'm saying. i got to go with the dog. i have two dogs. they're like my second children. can't believe somebody would do that to their pet. how does it get around? >> he was rescued from a homeless dog shelter.
his new owner is now putting him on a diet an try to get him back in shape. it is a good news story at the end of the day. with records to all the apple things going on over there, we have details of the new ipod touch. >> you've scarred me for life by that video. the ipod touch, we talk about how there is a renewed foe tus on ipods. we talked about the nano. the ipod touch is basically the iphone without the phone capabilities. right? has wi-fi, can play music, games. the new ipod touch coming out with a 5 mega pixel camera and get this -- 40 hours of battery life. >> 40 hours! >> that's a lot of hours. that's like two or three days of work on cnbc. there is a renewed focus on the subsidiary product for apple, the iphone is 70% of their gross profit. but, we're seeing renewed focus
on the ipod nano, on the ipod touch as well. apple is sort of going back to basics in a way with some of these other products, talking about cameras, et cetera. again the event is not over. we're getting live updates as they happen. we'll bring them to our audience as they happen. we still could get the one more thing big reveal from apple. >> who knows? we're all waiting. coming up next -- america's favorite airline. we've been asking you to tweet us the best airline you've ever flown. great responses. lots of them in fact. it is all coming up. but first, violence flaring on the streets of libya and egypt. four americans including the u.s. ambassador is dead. is the region slipping back into instability. latest when street signs returns. your goals. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before.
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including the u.s. ambassador in libya have been killed in these uprisings. what does it mean for the stability in the region? the latest from the ground coming your way straight ahead. in the meantime, oil prices have been a little bit to the downside this morning. the flare in violence adding more pressure to an already strained energy market. has oil reached a tipping point? the energy trades also coming your way and the president and mitt romney both offering their plans to keep energy prices in check. but, is this just more campaign rhetoric? our truth squad is going to be joining us to sort fact from fiction. first though, let's begin with the latest situation on the ground in egypt and libya. nbc's chief foreign correspondent richard engel has more from cairo. >> reporter: protests here similar to the ones are continuing today but so far they have remained peaceful. a lot more security presence from the egyptian government. we have not seen anyone try and scale these 20-foot high
perimeter wall around the u.s. embassy like they did yesterday. the big news, however, more details about what happened last night at the u.s. consulate in the city of benghazi. we've been told by libyan officials now confirmed by the president and others that the u.s. ambassador was in the consulate at the time, along with three other americans when it was attacked. >> the united states condemns in the strongest terms this outrageous and shocking attack. we're working with the government of libya to secure our diplomats. i've also directed my administration to increase our security at diplomatic posts around the world. and make no mistake, we will work with the libyan government to bring to justice the killers who attacked our people. >> reporter: according to the doctor who treated the u.s. ambassador, he died of smoke inhalation. >> nbc's richard engel reporting from cairo.
what do these attacks mean to the oil market? joining us, vice president of middle eastern and south asian affai affairs. thank you for being with us. if you can't see a rally in the price of oil in an almost unprecedented situation like this where you've basically got an oil producing nation murdering a u.s. ambassador, what does that say to you about the price of oil? are the fundamentals just too weak? >> i think essentially what happened today is a continuation of the overall trend within the region? those who are speculating over the price of oil, the psychology is such that they've already factored in that this is a volatile region and will remain volatile for a very long time to come. keep in mind, all of this, even today's attack, comes in the context of the arab spring and the political vacuum that has been created in many of the countries of the middle east. >> in other words, you don't
think that oil production's going to be affected at all. >> it depends. if those on the ground who are working in the energy sector of libya maintaining production and trying to enhance it feel that this was like a one-off attack and overall the situation isn't going to get worse than it already is, then i don't think we're going to see a whole lot of impact on oil production. but if the unrest -- >> what's your assessment of the situation? do you think this is going to get a lot worse from here? do you think this is another wave of instability or is it a one-off attack, for example, sparked by many people's reaction to the film? >> this is all very new at this point in time. it is very difficult to say which way this will go. everything will depend upon how the unrest over the film is managed. both by the libyan authorities an by the united states government. if there's a large crackdown in the country on potential trouble makers, then that could backfire
and we could see this evolve into further violence. but if that doesn't happen, then i don't foresee an impact on oil. >> thank you very much for joining us today. u.s. energy policy is a major issue in the presidential race. with both campaigns painting wildly different pictures of the situation. our senior correspondent scott cohn is here to try to separate the fact from fiction in our weekly fact checking report. what have you found? >> well, guess what? there's spin on both sides. let's start with the president last week in charlotte. >> in the last year alone, we cut oil imports by 1 million barrels a day. more than any administration in recent history. and today the united states of america is less dependent on foreign oil than at any time in the last two decades. >> well, it is true that the u.s. now imports only 45% of its petroleum, the lowest since the '90s, according to the energy information administration.
but the trend began in 2005. while the president points to increased domestic production, the eia says the most significant factor is the contraction in consumption. in other words, one of the big reasons imports are down is that the economy is down. but wait, here's mitt romney last month on this energy policy. >> i will set a national goal of america and north america, north american energy independence by 2020. north american energy independence by 2020. that means we produce all the energy we use in north america. >> to do that, romney proposes more domestic production and less regulation. last month the campaign cites reports by citigroup and raymond james as proof it can do it. we read the reports and checked with the analysts. both say north america is already on a path to energy independence by 2020. the key they say is not just
increased production which is already happening, but continued conservation, using alternatives like biofuels. you can of course read more of our fact checks at cnbc.com. of course we really do want to hear from you. firstname.lastname@example.org. i want to get back to the san francisco apple event. brian, getting more details on the ipod. what's going on? >> we're getting more details on how you listen to the ipod, the ipad, the iphone, whatever it may be. we all know the ubiquitous white apple headphones. there's about 100 pairs around here. they are getting their first update in years. apple saying their new earpods, that's what they're calling them, come after three years of design and innovation. there's the look. they are apparently a little rounder, little more like a ball, less like a disk that fits in your ear. a lot of people complained that when they jog they fall out so apple addressing that issue. a stock you want to pay attention to, skull candy.
they're a recently fairly public company that produces headphones, earbuds. that stock taking a hit. apple nipping around the margins on epoar pods. stocks in those spaces taking a hit. a rumor is that tim cook may be taking the stage at the end, after other designers and product heads. mandy, maybe we will get that, oh, and by the way -- one more thing. i sounded like herb -- by the way! >> but -- one more thing. and this is news that you can use, brian. i believe that the foo fighters are taking the stage right now and performing. there you go. it is all happening out there. >> that's news i need to go listen to. >> with your ipod earpod. thank you, brian. all the other headlines in just a second. plus, emirates airlines are making a big push in the united
states. we'll look at what they're all about. we'll also read your tweets about the best airline you've ever flown and why. when street signs returns. if we want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac
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i'm bill griffin. coming up at the top -- would the economy be better off if the fed stands firm? now that apple has unveiled iphone 5, does it have any other tricks up its sleeve? we heard tim cook maybe coming back to the stage later. then drill, baby drill. the latest violence in the middle east. is it proof that we finally need to gain our energy independence from that volatile region? maria and i look forward to seeing you at the top of the hour. >> see you then. thanks, bill. it is the fastest growing airline in the world. many even call it the best airline in the world. we're talking about emirates. airline wants to expand further here in america. phil lebeau is here with the details. i guess emirates makes a hub in
new york. >> today they added service in washington, d.c., complete with all the pomp and circumstances you usually see when an airline adds a new city to the destination. look at the water cannon salute in washington, d.c. as they touch down. this is the first flight in to d.c. this is the seventh market in the u.s. the third one added this year by emirates. yes, it is the fastest growing international airline. why have they targeted the u.s.? largely because it is untapped for them. look at the seven cities that they serve here. some people might be surprised if you have the three cities out west -- seattle, san francisco and los angeles. but they're adding a-380 service into los angeles, they do that out of new york city, you see dallas and houston there, expect to see chicago, second-tier cities, about 15 all together, mandy, when with it is all said and done. here is the head of emirates talking to what they try to
bring to the table for customers. >> obviously our passengers value what we do. the value proposition is an extremely good one. we don't charnel for food or amenities or baggage or whatever. we provide so much of the product free of charge with regard to just the add-on costs. you pay a fare. we think we -- our fares are reasonable, they're very competitive, but you get a lot more in the value in the fare proposition. >> pretty straightforward. did you hear what he said? you don't have to pay for food. you don't get nickelled and dimed to death. yes, you are not going to find cheap discount fares on emirates. that said, you know that when you get on that plane, you are treated probably better than you are on almost any other airline. >> they're really known for their great service. is that going to put pressure on u.s. airlines to provide better service as well? >> yes, on their international flights. anywhere emirates goes, you look at the track record, the airlines that compete with them feel the pressure. especially from the corporate people who really have the big dollars. >> phil, we actually asked all
of our viewers to tweet us what their favorite airline was and why. rick says -- emirates is good but for my money, singapore airlines is still the best. next level emirates is good, but singapore airlines is still the best. we got lots of other great responses, as well, but singapore airlines and emirates were high up on the list. up next from the what have you done for me lately file, we now know what to expect from apple. but beyond the apple iphone 5 has apple ran out of am mow? or could a possible ipad or apple tv? we will debate. olaf's pizza palace gets the most rewards of any small business credit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! put it on my spark card! [ high-pitched ] nice doin' business with you! [ garth ] why settle for less? great businesses deserve the most rewards! awesome!!! [ male announcer ] the spark business card from capital one.
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that's a big number. >> that is a very big number. you have to imagine, the reason why we had so many parts leaks out ahead of this is because apple was trying to make enough of these to satisfy that kind of demand. whether they get that from china and the u.s., apple did 30 million iphone 4s in the first two quarter. those people are looking to upgrade in the first two quarters. >> we've got at this phone 5 now out of the way. it is called mid-september. we've got 3 1/2 months left in the year. will we see another big announcement from apple before new year's? >> bet on it, brian. i think we will. a source of mine close to apple said we'll have multi.many announcements for the end of the year. this is just once. they're going to have something else. >> tv. >> my money is on the ipad mini, not a tv. i don't think they have the
deal. >> the kindle attacker. >> what's interesting on price point, they put the ipod touch at $300. where will they be with the ipad mini? maybe $350. you never know. >> i think not an i-unicorn. no unicorn from apple. >> and that might be why there does seem to be a little bit of disappointment in the stock. in fact, it even turned negative a minute ago. brian, get yourself on a plane. get back here. tomorrow is going to be a huge day and you need to be well rested. we had the fed decision at 12:15. brian will be hosting that event. then at 2:15, we will hear from ben bernanke in a live news conference, during this show, so as i say, not just a big day, but a huge day on cnbc. 103 days left until christmas. there's a new way to guarantee you're going to get your hands
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